How do I fill out the inventory expenses?

[hottie_balottie]

I am trying to figure out how to fill out the inventory expenses online and it's got me confused. Is the EOY valuation a total amount of the value I paid for the items that I only have left in my inventory? What are my purchases?

I wholesale random items I find. My COGS should be the amount I paid for only the items I sold, correct? If that's the case, I do not understand why it is calculating it as "Cost of purchases minus EOY valuation"

My BOY value is 0 since I had nothing before this year. I bought and sold items in the same year so I would not add those in the EOY valuation, correct?

I bought the items I sold this year at $260.50 (COGS, right?) and I sold them for $408.61. My EOY valuation for the items I still had in stock on 1/1/21 was $172.65.

What am I doing wrong here?

Another question, my business did more than just sales and had a lot of services provided. In the end of the thing to fill out inventory expenses it says that "sales are. . ." and it's the total amount of my whole business income, including services. Is this going to be a problem?

[ThomasM125]

The end of year valuation of your inventory would be the amount you paid for the items on hand at the end of the year.

Cost of good sold is the cost of the items you sold. It can be calculated by adding your beginning inventory to your purchases and subtracting your ending inventory.

Ending inventory would not include items bought and sold during the year, it would only be the cost of inventory items on hand at the end of the year.

The business Schedule C does not allow for the segregation of inventory sales versus service income, so it is not a problem that your sales include both sources of income.